Coast Guard awards $279M contract for C130 asset repair to S3 Aerodefense LLC

Contract Overview

Contract Amount: $27,900 ($27.9K)

Contractor: S3 Aerodefense LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-05-01

End Date: 2026-03-02

Contract Duration: 305 days

Daily Burn Rate: $91/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPAIR OF C130 ASSETS.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53209

State: Wisconsin Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27,900 to S3 AERODEFENSE LLC for work described as: REPAIR OF C130 ASSETS. Key points: 1. Contract aims to ensure continued operational readiness of critical C130 aircraft. 2. The award represents a significant investment in maintaining aging aviation assets. 3. Competition dynamics for this type of specialized aviation maintenance warrant further review. 4. Performance history of S3 Aerodefense LLC in similar aviation support roles is a key indicator. 5. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope. 6. Geographic focus on Wisconsin for repair services may have local economic implications.

Value Assessment

Rating: fair

Benchmarking the value of this $279 million contract for C130 asset repair is challenging without detailed cost breakdowns and comparisons to similar specialized aviation maintenance contracts. The U.S. Coast Guard's reliance on C130s for critical missions suggests a need for this service, but the price relative to the scope and duration of the work requires scrutiny. Without more granular data on the specific repairs and parts involved, it's difficult to definitively assess if this represents excellent value for money. However, the firm-fixed-price nature suggests an attempt to cap costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a procurement process designed for efficiency and speed for awards below certain thresholds. While 'full-and-open' competition is stated, the specific number of bids received and the details of the solicitation process are not provided. SAP can sometimes limit the breadth of competition compared to full-scale FAR-based procurements, potentially impacting price discovery. The Coast Guard's decision to use SAP suggests they assessed this as a procurement suitable for streamlined procedures.

Taxpayer Impact: The use of SAP aims for efficiency, but taxpayers benefit most when robust competition within these procedures drives down costs effectively. Ensuring a fair number of qualified bidders participated is crucial for taxpayer value.

Public Impact

The U.S. Coast Guard benefits through the enhanced operational readiness and extended service life of its C130 aircraft fleet. This contract ensures the continued delivery of critical services such as search and rescue, maritime law enforcement, and logistical support. The primary geographic impact is in Wisconsin, where the repair activities will be conducted, potentially supporting local jobs and businesses. The contract supports a specialized segment of the aerospace maintenance workforce, requiring skilled technicians and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the firm-fixed-price structure.
Dependence on a single contractor for critical C130 maintenance could pose supply chain or scheduling risks.
Ensuring the quality and thoroughness of repairs to meet stringent aviation safety standards is paramount.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Award to S3 Aerodefense LLC suggests they met technical and performance requirements.
Contract duration of 305 days indicates a focused effort on specific repair needs.

Sector Analysis

The aerospace maintenance and repair sector is highly specialized, requiring significant technical expertise, certifications, and infrastructure. The C130 Hercules is a widely used military and civilian transport aircraft, and contracts for its sustainment are crucial for maintaining operational fleets. Spending in this area is driven by the need to extend the life of aging aircraft, ensure airworthiness, and support complex global operations. Comparable spending benchmarks would typically involve analyzing other large MRO (Maintenance, Repair, and Overhaul) contracts for similar aircraft types within defense and homeland security agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if S3 Aerodefense LLC chooses to engage small businesses for specific components or services. Without explicit subcontracting plans or goals mandated in the contract, the direct benefit to small businesses may be limited unless they are prime contractors in future, smaller procurements.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and program management offices. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to complete work within the agreed budget. Transparency is generally facilitated through contract award databases, but detailed performance monitoring and inspection reports are typically internal. The extent of Inspector General jurisdiction would depend on the specific circumstances and any potential allegations of fraud, waste, or abuse.

Related Government Programs

C130 Aircraft Sustainment Programs
Aviation Maintenance, Repair, and Overhaul (MRO) Services
Homeland Security Aviation Operations
U.S. Coast Guard Fleet Readiness

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of cost growth if unforeseen repair issues arise.
Contractor performance history requires thorough vetting.
Dependence on a single source for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27,900 to S3 AERODEFENSE LLC. REPAIR OF C130 ASSETS.

Who is the contractor on this award?

The obligated recipient is S3 AERODEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $27,900.

What is the period of performance?

Start: 2025-05-01. End: 2026-03-02.

What is the track record of S3 Aerodefense LLC in performing C130 aircraft maintenance and repair services for government agencies?

Assessing the track record of S3 Aerodefense LLC is crucial for understanding their capability and reliability in executing this $279 million contract. Information regarding their past performance on similar C130 maintenance contracts, including the scope of work, contract values, duration, and client agencies (e.g., Air Force, Marines, other Coast Guard procurements), would provide valuable insights. Key performance indicators such as on-time delivery, adherence to budget, quality of work, and any history of contract disputes or corrective actions should be examined. A review of federal procurement databases (like SAM.gov or FPDS) and past performance evaluations would be necessary to form a comprehensive picture of their experience and suitability for this critical aviation support role.

How does the awarded price of $279 million compare to historical spending on similar C130 repair contracts by the U.S. Coast Guard or other federal agencies?

To benchmark the value of this $279 million award, a comparative analysis of historical spending on similar C130 repair and sustainment contracts is essential. This would involve identifying contracts with comparable scope (e.g., depot-level maintenance, component overhaul, structural repairs), duration, and aircraft variants. Examining data from agencies like the Department of the Air Force or Department of the Navy, which operate significant C130 fleets, could provide relevant benchmarks. Factors such as inflation, technological advancements in repair techniques, and market competition levels over time need to be considered. Without such a comparison, it is difficult to ascertain if this award represents a fair market price or if it is potentially inflated.

What specific risks are associated with relying on S3 Aerodefense LLC for the repair of critical C130 assets, and what mitigation strategies are in place?

Key risks associated with this contract include potential delays in repair turnaround times, which could impact Coast Guard operational readiness, and the possibility of unforeseen technical issues leading to cost increases, despite the firm-fixed-price structure. Dependence on a single contractor for specialized maintenance also presents a risk if the contractor faces financial instability, labor shortages, or supply chain disruptions. Mitigation strategies likely involve robust contract oversight by the U.S. Coast Guard, including performance monitoring, regular progress reviews, and potentially penalties for non-performance. The contract may also include clauses for surge capacity or alternative solutions in case of contractor default, though details are not provided.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for specialized aviation maintenance services like C130 repair?

Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in procuring goods and services below certain dollar thresholds, aiming to reduce administrative burden. For specialized aviation maintenance, SAP can be effective if the market has a sufficient number of capable small businesses or if the scope is well-defined and easily understood by multiple bidders. However, the inherent nature of highly specialized services like C130 repair might limit the pool of eligible bidders, potentially reducing the level of competition compared to full and open competition under the Federal Acquisition Regulation (FAR). The effectiveness in ensuring competitive pricing hinges on the specific market dynamics for C130 MRO and the diligence of the contracting officer in soliciting adequate offers.

What is the projected impact of this contract on the operational readiness and mission capabilities of the U.S. Coast Guard's C130 fleet over the contract period?

This contract is directly aimed at enhancing the operational readiness and extending the service life of the U.S. Coast Guard's C130 assets. By ensuring timely and quality repairs, the contract helps maintain the availability of these critical aircraft for their diverse missions, including search and rescue, maritime patrol, law enforcement, and logistical support. The projected impact is a reduction in aircraft downtime due to maintenance, an increase in the overall reliability of the fleet, and the sustained capability to respond to national security and humanitarian needs. The successful execution of this contract is vital for the Coast Guard to fulfill its statutory responsibilities effectively.

Are there any specific performance metrics or key performance indicators (KPIs) tied to this contract that will be used to measure S3 Aerodefense LLC's success?

While the provided data does not detail specific Key Performance Indicators (KPIs) for this contract, it is standard practice for government contracts, especially those involving critical assets like C130 aircraft, to include performance standards. These typically revolve around factors such as timely completion of repairs, adherence to quality specifications, meeting delivery schedules, and maintaining safety standards. The firm-fixed-price nature of the contract implies that meeting the defined scope of work within the agreed price is a primary performance metric. The U.S. Coast Guard would likely have internal processes for monitoring contractor performance against these implicit or explicit standards throughout the contract duration.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03825QH0000059

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 W CAMDEN RD, MILWAUKEE, WI, 53209

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,900

Exercised Options: $27,900

Current Obligation: $27,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline